Financial Health Nancy Castillo

About CFSI CFSI Connect Advise Inform Innovate The Center for Financial Services Innovation is an authority on consumer financial health, leading a network of financial services innovators committed to building better consumer products and practices. Connect We foster dialogue and collaboration through CFSI events and networking opportunities. CFSI Advise We offer consulting services to both for-profit and nonprofit providers. Inform We provide deep consumer insights and industry research. Innovate We seed and test promising new ideas.

57% of Americans are struggling financially 138M People Understanding and Improving Consumer Financial Health in America, CFSI, 2015

Janice

Janice

\ Why?

Business Case for Financial Health Customer retention Profit per customer Intangibles Total Value Source: Gallup Retail Banking Industry Study, 2015

= cost of financial matters per employee $7,000 per year = cost of financial matters per employee

Financial Health Journey ORIENT Understand Financial Health ALIGN Consider Financial Health within the Context of Your Company DIAGNOSE Benchmark Your Customers’ Financial Health (Diagnose Employees’ Needs) DESIGN Develop Strategies to Improve Financial Health (Identify and Implement Appropriate Solutions) DELIVER Launch Your Financial Health Strategy (Drive Engagement) TRACK Monitor Shifts in Your Customers’ Financial Health (Measure Your Efforts) IMPROVE Evaluate Your Strategies for Greater Impact ORIENT ALIGN DIAGNOSE DESIGN DELIVER TRACK IMPROVE

ORIENT ALIGN DIAGNOSE DESIGN DELIVER TRACK IMPROVE

ORIENT ALIGN DIAGNOSE DESIGN DELIVER TRACK IMPROVE

Financial Health Measurement Framework You are financially healthy when you… SPEND 1. Spend less than income 2. Pay bills on time and in full SAVE 3. Have sufficient liquid savings 4. Have sufficient long-term savings or assets BORROW 5. Have a sustainable debt load 6. Have a prime credit score PLAN 7. Have appropriate insurance 8. Plan ahead for expenses SPEND SAVE BORROW PLAN

CFSI Financial Health Score™ Spend XX Save Borrow Plan Fin Health Score XXX Provides a holistic, moment-in-time snapshot of an individual’s or group of customers’ financial health. Based on eight multiple choice questions that align with CFSI’s indicators of financial health. Provides one CFSI Financial Health Score™ and four sub-scores. The score is designed to be simple, straightforward, and easy-to-use; a starting point to measure and improve your customers’ financial health. Fin Health Score overview

Financial Health Measurement Uses Enterprise Level Metrics Individual Level Metrics

ORIENT ALIGN DIAGNOSE DESIGN DELIVER TRACK IMPROVE

Financial Health Levers Products Programs People & Places Products Tools Services Financial advice Guidance Resources Channels Segment strategies Employees

Financial Health Programs Light Touch Financial Advice Financial Health Assessments Financial Coaching In addition to high quality products, well designed processes, experience and other services such as financially assessments and advisory programs can also be impactful. In our experience successful programs have 4 keys themes to success. First we must be timely- Delivering information at a moment of decision making can provide immediate feedback that helps consumers better understand the consequences of their behavior. For example- low balance alerts would prevent a consumer for making a purchases that would result in an overdraft. They then send an email about ways one can prevent overdrafts in the future. Second, the programs must be actionable- providing a F.H Score with an action plan can be very empowering Third, these efforts must be ongoing- repitition is key to learning Light touch approaches such as repeated alerts and texts that are delivered electronically can also effective. This device can be shared through actionable tools and you can interact with chat boxes to help customers in even more complex decisions Finally these kinds of programs can be more effective when they are integrated with the underling product This allows consumers to put their knowledge into action Keys to success: Timely, Actionable, Ongoing, and Integrated

ORIENT ALIGN DIAGNOSE DESIGN DELIVER TRACK IMPROVE

Janice

Questions?

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